[kman42]

From Walt Mossberg's review of the 3GS:
"But AT&T, stung by criticism in recent days, has just decided to offer the lower, new-customer prices at launch to iPhone 3G owners eligible for upgrades at any time up to Sept. 30 of this year, even if they were originally told they’d have to pay the $200 premium."

Now, I just checked my status on Apple's web site and called ATT and they both still report that I am now eligible until 7/12, but the rep said that maybe the decision just hasn't been implemented in their system yet. OR, Walt could be wrong, but he's usually on top of this sort of thing.

I would suggest that people start calling ATT and spreading the word for others to do so. That may spur ATT to release something official.

kman

[kman42]

Email I just received from Walt (cool!):
It's true, got it straight from AT&T HQ. But I printed all I know.

Walt Mossberg
Wall Street Journal
walt.allthingsd.com

[mdc]

AT&T Announcement

All of that said, we’ve been listening to our customers. And since many of our iPhone 3G customers are early adopters and literally weeks shy of being upgrade eligible due to iPhone 3G S launching 11 months after iPhone 3G, we’re extending the window of upgrade eligibility for a limited time.

We’re now pleased to offer our iPhone 3G customers who are upgrade eligible in July, August or September 2009 our best upgrade pricing, beginning Thursday, June 18.

On your iPhone you can phone *639# and it'll sms you telling you when you're available for an upgrade. According to AT&T if that is in July, August, or September you get the regular price.

[mduell]

Terrible decision IMO. Then again, so is the AT&T upgrade eligibility formula.

[I'mDaMac]

I'm not eligible for upgrade pricing 'til 1/10. At this rate, even if they offered me something, I'll wait to see what Apple has next year at this time. I'm tired of ATT and don't want to extend my contract for two more years (one more year actually since I owe them a year still). Hopefully the Verizon rumors are true because I want to jump ship when my contract expires next year.

[kman42]

mduell--why is it a terrible decision? It may not make complete business sense, but it makes complete PR sense. They know that people in this time frame are early adopters and loyal to Apple products. Why not make them happy? In the end, it won't cost them that much compared to the number of happy customers. Besides, they may be losing iPhone exclusivity soon, so they should do whatever they can to tie people into a contract as long as possible. One extra year on contract easily pays for that $200 subsidy.

[angelmb]

How Much It Costs to Upgrade to an iPhone 3G S.

[mdc]

I was originally eligible on September 29th and with yesterday's news it means I can buy one tomorrow. I just went through the steps on http://buyiphone.apple.com and it says the 3GS will be $199 and $299.

I guess I'll make a stop at the Apple Store on the way into work tomorrow.

[SierraDragon]

After coming from Sprint (which really sucks) to the original iPhone I was very happy with AT&T in spite of mediocre coverage in my locality - - until this pricing fiasco. And yes, I get the concept of subsidized contracts (duh), but from a long term customers relationship standpoint this apparent dissing by AT&T of its best customers is NUTS.

Do AT&T managers not have a clue as to how competitive their marketplace is? Or (more likely) are they just looking at short-term revenue and the impact on management salaries? Certainly in the long term any moron should be able to understand how important customer perceptions are.

The 3Gs is a GOOD THING and should have been used to rally existing users, not alienate them! There are a dozen ways AT&T could have played this upgrade without alienating opinion-leading customers.The "gift" of 2.5 months out of 18 is a nice try to dig out of an unnecessary hole, but is woefully inadequate and applies only to a small subset.

Tens of thousands of users who previously could have cared less are now lobbying Apple to dump AT&T exclusivity. Whether or not Apple keeps AT&T as exclusive, the change in users' attitudes has cost AT&T millions if not billions of dollars in the overall negotiating relationship alone in addition to long term service provider preference.

Some managers at AT&T badly need to find other employment not involved with live, thinking customers.

-Allen Wicks

[SierraDragon]

My iPhone does not become eligible until October 5th. Who knows how the smart phone space wil have evolved by then? And perhaps by then Verizon will be an alternative iPhone service provider to AT&T.

[mdc]

I can't find the exact length but I think the Apple AT&T contract will only expire sometime in 2010 or 2011, so I doubt Verizon -- or any other carrier -- will have an iPhone in October.

I think it's unfortunate that not everyone can upgrade to the latest and greatest iPhone as soon as they want, but we have to look at this from AT&T's point of view. They're loaning you around $200 as soon as you sign that two year contract and depending on how much you pay per month with your contract is how soon they determine that you can upgrade for free. From their business end of things it makes sense.

Yes it sucks that a lot of people are not eligible now, but if you really need an iPhone 3GS before AT&T feels that you'd paid off your phone you can always pay the extra $200 and get one right away.